The City of Glenbrae, CA accounts for inventories on the Purchases Method. The General Fund budgeted $180,000 in supplies for fiscal year 2016. It began the 2016 fiscal year with $8,000 of Supplies on hand. During 2016 the General Fund ordered $176,000 of Supplies, received and paid for $176,000 and consumed $170,000 of Supplies.

Chart of Accounts: Cash; Supplies Inventory; Expenditures Supplies; Fund Balance -

Unassigned; Fund Balance Non-Spendable

Required:

Prepare the journal entries that the General fund should make in 2016.(IGNORE ENCUMBRANCES)

a.Journal Entry #1 Received Invoice for Supplies

b.Journal Entry #2 - Submitted payment for Supplies

c.Journal Entry #3 Adjust the change in Supplies Inventory and Fund Balance Non-Spendable Accounts for Supplies on Hand at the end of 2016.

The City of Glenbrae, CA accounts for inventories on the Consumption Method. The General Fund budgeted $180,000 in supplies for fiscal year 2016. It began the 2016 fiscal year with $8,000 of Supplies on hand. During 2016 the General Fund ordered $176,000 of Supplies, received and paid for $176,000 and consumed $170,000 of Supplies.

Chart of Accounts: Cash; Supplies Inventory; Expenditures Supplies; Fund Balance -

Unassigned; Fund Balance Non-Spendable

Required:

Prepare all journal entries that the General fund should make in 2016.(IGNORE ENCUMBRANCES)

a.Journal Entry #1 Received Invoice for Supplies

b.Journal Entry #2 - Submitted payment for Supplies

c.Journal Entry #2 Record the use of supplies for 2016.

d.Journal Entry #2 Adjust the change in the Fund Balance Non-Spendable Accounts for Supplies on Hand at the end of 2016.